Japan Plans to Build SWIFT-Like Network for Crypto

In a bid to tackle money laundering using digital currencies, Japan is leading a push to introduce a SWIFT-like international payment system for Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, Reuters reported on Thursday.

The platform is said to be monitored by an inter-governmental Financial Action Task Force (FATF) team, according to the unnamed source of the publication. The island-nation is also planning to set up the network by the next few years.

A bold move or a calculated one?

SWIFT is an inter-bank messaging network used by banks all around the world to send sensitive financial information, including transaction details. Cryptocurrencies, on the other hand, can be sent to anyone around the world just by knowing the receivers wallet address.

Considering the decentralized nature of public Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term networks, it is still unclear how the country is planning to implement such a monitoring network.

The report also revealed that the FATF last month approved the establishment of a new network proposed by the country’s Ministry of Finance and the Financial Services Agency (FSA).

Making crypto the currency of future

When it comes to adopting digital currencies, Japan is one of the most progressive countries around the globe. It became one of the first countries to give Bitcoin the status of a legal tender.

However, the country is still struggling to put proper regulations on the wild crypto industry. After the massive Coincheck hack last year, the country 's watchdog agency tightened its grip on crypto trading platforms and issued notices to many companies for security lapses.

Currently, any company willing to offer crypto trading services to Japanese traders has to obtain a license from the FSA. Finance Magnates recently reported that over 100 crypto exchanges are seeking licenses from the regulatory body to establish crypto trading platforms. However, the agency approved only three exchanges this year to start their operations.